Budget amendment reveals staggering $9 million deficit

In a recent government meeting, the board discussed the approval of a General Fund Budget Amendment for the 2024-2025 fiscal year, presented by Amy Childress. The amendment follows the adoption of the budget last week and incorporates commitments totaling $6,000,869, resulting in a projected budget deficit of $2,961,526. When combined with the commitments, the total deficiency for the upcoming budget year is estimated at $9,831,461.

Childress reported that the estimated ending fund balance for the 2024-2025 year would be $24,428,903, with a minimum required fund balance of approximately $21 million to cover 75 days of cash flow. This leaves an estimated excess fund balance of $2,799,061.

During the discussion, Dr. Reyes sought clarification on the timing of the audit, which is set to begin in the third week of July and must be finalized by the end of November. Childress emphasized that the actual fund balance adjustments would not be confirmed until the audit is complete.

The conversation also touched on the absence of carryover funds from the current year, as the district had spent $2,441,000 more than anticipated. Childress explained that while there were no carryover funds, some departments and campuses had underspent, particularly in payroll, which contributed to a lower-than-expected deficit.

The administration recommended that the board approve the budget amendment, and the board is expected to vote on this recommendation in the coming sessions.